Study On Design And Pricing Of The Equtiy-linked Structured Products Issued By Commercial Banks Of China

As is an investment item whose extent of the risk is intermediate.the structured products linked-equity are prevalent among the investors as soon as introduced to the market for their strcuture determine that the rate of the return attached to the behavior of the captial market and can guarantee some extent of the principal protection.In such a complicated surroundings full of competition,how to design and price such kind of products reasonably and scientifically not only result in the efficeny of the commercial banks'aim at the demand of the objective investors.but also provide an effective way to the balance of the profit and the cost about those products,which would foster the clients'market loyalty and keep the advantage in the competition.The first part of the article reviewed the historical and pricing documents of the structured products linked-equity and then put forward the author's research prospective and method.The second part analysed the important property about those products such as the structures,characters,components,risk and so on.The third set up the models of the designment for the products including the market oritation and the designment of the structured parameters under the basis of the market aspects analysis.The fourth showed the anylytic and numerical method fo pricing such products and gave some common products'prcing thoughts popular in the market.The fifth part provided analysis of two examples of the products which are differentiated by their complication that whether can be redeemed from the investors and stated the detail of the pricing process.The last summed up the conclusion and the drawback of the paper and offered some political advice to the commercial banks.